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SF902 (Legislative Session 94 (2025-2026))

Revenues from sales tax on various products and services allocation to the highway user tax distribution fund

AI Generated Summary

This legislative bill, S.F. No. 902, proposes modifications to the way sales tax revenues are handled in Minnesota, specifically allocating portions of these taxes to different funds and projects within the state. Key aspects of the bill include:

  1. General Allocation: It amends how taxes collected on sales and purchases are distributed, specifying that certain percentages must go into specific accounts like the highway user tax distribution fund and the general fund.

  2. Specific Uses:

    • Taxes from agricultural project-related purchases go into agricultural and economic accounts.
    • Revenues from the sales of motor vehicle repair and replacement parts are increasingly allocated to the transportation advancement account over several years, with the remainder going to the highway user tax distribution fund and the general fund.
    • Taxes collected from certain activities and items, such as those impacting fish and wildlife, state parks, and local trails, are designated to enhance specific environmental and recreational projects.

  3. Highway User Tax Distribution Fund: New provisions are introduced for the allocation of sales taxes derived from vehicle services, vehicle rentals, and bicycle-related sales and services to this fund.

  4. Environmental and Recreational Enhancements:

    • A considerable portion of certain taxes supports the heritage enhancement account for activities improving fish and wildlife resources.
    • Other portions support natural resources funds used for parks, trails, and zoos.

  5. Community Inclusion: Further funds are allocated for outdoor recreational opportunities for underserved communities, emphasizing inclusivity in accessing natural and environmental resources.

  6. Emergency Services Funding: Sales of specific items lead to funds for fire safety and volunteer fire assistance.

This bill aims to clearly designate where and how tax revenues should be utilized, enhancing transparency and ensuring funds are used to support specified state needs and projects, from highway maintenance to environmental conservation and community recreation.

Bill text versions

Actions

DateChamberWhereTypeNameCommittee Name
February 02, 2025SenateFloorActionIntroduction and first reading
February 02, 2025SenateFloorActionReferred toTransportation
February 09, 2025SenateFloorActionAuthor added

Citations

 
[
  {
    "analysis": {
      "added": [
        "New allocations for transportation advancement from revenues applicable in fiscal years 2024 through 2033."
      ],
      "removed": [
        "No sections removed."
      ],
      "summary": "This bill amends section 297A.94 relating to the deposit of state sales tax revenues.",
      "modified": [
        "Adjusted percentages and allocations for tax revenue deposits into various funds, such as the highway user tax distribution fund."
      ]
    },
    "citation": "297A.94"
  },
  {
    "analysis": {
      "added": [
        "Additional contexts for tax revenue deposit related to conditional commitments for a loan guaranty."
      ],
      "removed": [
        "No sections removed."
      ],
      "summary": "This section pertains to loan guaranties for agricultural resource projects.",
      "modified": [
        "Clarifies the role of commissioner in certifying conditional commitments."
      ]
    },
    "citation": "41A.04"
  },
  {
    "analysis": {
      "added": [
        "Integrates new procedural references for deposits regarding the special tax bond debt service."
      ],
      "removed": [
        "No sections removed."
      ],
      "summary": "This relates to state fiscal procedures for managing debt service accounts.",
      "modified": [
        "Clarification of fiscal priorities regarding revenue allocation to debt service accounts."
      ]
    },
    "citation": "16A.661"
  },
  {
    "analysis": {
      "added": [
        "Expanded definitions critical for understanding applicable sales and use categories for tax designation."
      ],
      "removed": [
        "No sections removed."
      ],
      "summary": "Provides definitions critical for the application of tax rules.",
      "modified": [
        "Clarified categorical allocations for motor vehicle and related repair services taxes."
      ]
    },
    "citation": "297A.61"
  },
  {
    "analysis": {
      "added": [
        "Defined allocations from sales revenue to fire safety accounts."
      ],
      "removed": [
        "No sections removed."
      ],
      "summary": "Establishes accounts related to fire safety funding.",
      "modified": [
        "Details clarified for revenue percentages attributed to fire safety measures."
      ]
    },
    "citation": "297I.06"
  },
  {
    "analysis": {
      "added": [
        "New percentage allocations to existing accounts for environmental purposes."
      ],
      "removed": [
        "No sections removed."
      ],
      "summary": "Governs the establishment of environmental accounts such as the pollinator account.",
      "modified": [
        "Revised allocations for environmental conservation-related funds."
      ]
    },
    "citation": "103B.101"
  }
]

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